Generation Mining is focused on the development of its 100%-owned Marathon project that covers a land package of about 220 sqkm.
A feasibility study released last year estimated that at $1,725 per oz. palladium and $3.20 per lb. copper, Marathon’s net present value (at 6% discount rate) is approximately C$1.1 billion with a payback of 2.3 years and an internal rate of return of 30%. Upfront capital costs were estimated at C$665 million.
The mine would produce an estimated 245,000 oz. palladium-equivalent per year over a 13-year mine life at an all-in sustaining cost of $809 per palladium-equivalent oz.
Late last year, Generation Mining made a C$240 million streaming deal with Wheaton Precious Metals (TSX: WPM; NYSE: WPM). The funds will be used during construction at the project.
Last month, the company signed a memorandum of agreement with the Biigtigong Nishnaabeg First Nation covering the Marathon project.
(This article first appeared in the Canadian Mining Journal)
